G6 Consulting unveils R&D tax software to reduce CEWS clawback

G6 Consulting, a boutique Toronto-based consulting firm specializing in scientific research and experimental development (SRED) tax credits, has announced a new software solution to help reduce the impact of Canadian Emergency Wage Subsidy (CEWS) clawbacks.

The Canada Revenue Agency last month confirmed that CEWS payments would claw back federal tax credits, including the SRED.

Under the SRED program, Canadian companies receive tax credits for developing new products, enhancing existing products, building prototypes, and developing new technology. Over $2 billion was awarded to 18,000 Canadian companies in 2018.

According to the CRA, assistance received under the wage subsidy will reduce the amount of expenses eligible for SRED tax credits. Many companies, however, might mistakenly over-deduct and unnecessarily reduce their SRED salary expenditures or overall expenditures to zero.

G6 Consulting's software solution, built on Google Cloud, accurately calculates the overlap between SRED and CEWS monies received to isolate the correct dollar amount for deductions.

"Deconflicting CEWS and SR&ED funding received is so complex that without specialized software, Canadian businesses stand to lose 65% of their SR&ED funding compared to just 5 to 15% they would lose with our software," says Greg Hills, CEO of G6.

G6’s software will help clients reduce clawback of SRED credits, provide detailed documentation, and save the time required for complex and numerous manual calculations.

Founded in 2008, G6 helps clients across industries create and submit SRED claims in Canada. The firm’s experts have submitted hundreds of successful claims in the last 12 years.